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High Liner to buy Viking Seafoods for $31.5 million

Last updated: 22:24 10 Dec 2010 GMT, First published: 23:24 10 Dec 2010 GMT

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Frozen seafood company High Liner Foods  (TSX: HLF; HLF.A) said it plans to acquire US-based foodservice business Viking Seafoods for $31.5 million.

The announcement follows High Liner's release yesterday, which said the company planned to acquire an unnamed foodservice business with revenues of approximately $40 million.

High Liner said the acquisition is expected to substantially increase its share of the market for  seafood products in the U.S. foodservice industry.

"A key component of High Liner's overall growth strategy is to acquire complementary businesses that strengthen our market leadership position. This deal fits perfectly within that plan," said High Liner president and CEO, Henry Demone.

The purchase price does not include Viking's plant in Malden, Massachusetts, which High Liner expects to lease, it said.

The transaction, which is expected to close within the next week subject to board approval and due diligence, is anticipated to be accretive to earnings per share in 2011.

Viking brand products are distributed nationally in the U.S. to customers in the health care, education and commercial and independent restaurant markets.

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